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DAF Schwab Charitable Donors Distributed $4.7 Billion in 2022

Users of Schwab Charitable’s donor-advised funds (DAFs) recommended more than $4.7 billion in grants, including 995,000 grants to more than 117,000 charities, during 2022. The dollar figure represents a 7% increase — nearly $300 million — allocated for nonprofits compared with 2021.

Each month’s total distributions during 2022 surpassed those of the comparable month in 2021. The growth in distributions was partly in response to new crises: the Russian invasion of Ukraine, a series of substantial natural disasters and a variety of global humanitarian crises brought the need to support nonprofits into sharp relief. Schwab Charitable donors made an average of 10 grants apiece throughout the year, according to data released by Schwab Charitable.

The increase in distributions came despite the stock market experienced its worst year for U.S. stocks since 2008. Years of previous donations to Schwab DAFs boosted donors’ ability to give, despite the stock market tumbles.

“Last year showcased the resilience of donor-advised funds at a time when charitable giving has never been more important,” Fred Kaynor, Managing Director of Relationship Management, Marketing and Strategic Partnerships at Schwab Charitable said via a statement. “Many donors remained in a strong position to grant to charities because of previous contributions of both cash equivalents and non-cash assets to their donor-advised fund accounts. As a result, they were able to meet their philanthropic goals despite the market volatility and economic uncertainty in 2022.”

Despite the travails of the stock market, donors continued to contribute to their DAFs. But the nature of these contributions might be changing. During the past year, 60% of contributions were of non-cash assets. According to a statement from Schwab Charitable, donating non-cash assets directly to an organization allows donors to eliminate capital gains taxes on the assets, potentially increasing the amount available to the receiving organization by as much as 20%.

Schwab Charitable facilitates donations through its work with The Center for Disaster Philanthropy (CDP). The CDP provides Schwab Charitable donors with lists of pre-vetted charities that support global crises relief and recovery efforts. During 2022, donors upped the number of donations they made to CDP-recommended organizations by 33% compared to 2021.

Schwab Charitable donors also are increasingly taking a page from uberphilanthropist MacKenzie Scott, who has made unrestricted donations — those that allow recipients to apply received funds to their greatest needs, whether programmatic or structural. During 2022, 71% of donations made by Schwab Charitable donors were unrestricted.

“I’m so grateful to see how our donors continue to increase their giving, despite a tough year with economic uncertainty, natural disasters and global crises,” Schwab Charitable President Sam Kang said via a statement. “Our donors combine consistent support for their favorite causes with a willingness to open their hearts and wallets to new charitable organizations as unforeseen needs arise. Their generosity fuels our mission to increase the giving power of donors and accelerate the flow of dollars to charities and local communities.”